topic Re: Traditional IRA basic contribution question in Retirement tax questions

Traditional IRA basic contribution question

thepep — Mon, 12 Apr 2021 01:30:26 GMT

I work for a company and have a 401K retirement plan. Married filing jointly and am over 50 yrs old. I have a Traditional IRA. Am I correct in my belief that I can contribute up to $7000 ($6000 + 1000 since over 50 yrs old) for the 2020 tax year? And I can contribute this amount up to the tax deadline date of April 15, 2020 (now extended to May 17th)? Thank you.

Re: Traditional IRA basic contribution question

dmertz — Mon, 12 Apr 2021 01:44:02 GMT

All correct (assuming that you have at least $7,000 of compensation to support the IRA contribution). However, a traditional IRA contribution may or may not be deductible depending on your modified AGI for the purpose:

https://www.irs.gov/retirement-plans/plan-participant-employee/2020-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work

Re: Traditional IRA basic contribution question

thepep — Mon, 12 Apr 2021 11:47:24 GMT

Understood. Income > $7k and not eligible for deduction but better to put in IRA than sit in bank I hope. Thanks!